Johannesburg - South African corn futures rose to the highest level in more than a week as the rand dropped against the dollar, making imports of the locally produced grain more expensive.
Yellow corn for delivery in July, the most active contract, gained 1.2 percent to 2,167 rand ($231) a metric ton by the close in Johannesburg. The white variety for delivery in the same period climbed 0.6 percent to 2,176 rand a ton.
The rand weakened 0.9 percent to 9.3661 per dollar by the noon close of the grain-futures market in Johannesburg.
The currency has slipped for a sixth day and is headed for its longest losing streak in a year on concern that falling commodity prices and labor unrest at mines are threatening the nation’s credit rating.
“Our prices were affected by the weakening rand,” Thys Grobbelaar, an analyst at Klerksdorp, South Africa-based Senwes Ltd., said by phone.
“This caused an upward movement for our local price.”
South Africa is the continent’s biggest producer of corn.
The white grain is a staple food in the country, while the yellow variety is mainly used as animal feed.
Wheat for delivery in July declined 0.1 percent to 3,495 rand a ton. - Bloomberg News